Chief Financial Officer Lorraine Rossetti said at Tuesday night's council meeting that PNC Bank detected fraudulent activity in the borough's current fund checking account. Someone in Kentucky cashed five fake checks in late June and early July, she said.

The checks totaled just under $9,500, according to Rossetti.

The bank notified Rossetti June 30, the first business day after the first two checks were cashed. The account is now on fraud alert and the borough has recouped every penny, Rossetti said.

"Their fraud department is just top-notch," she said.

A PNC fraud investigator and Phillipsburg police are looking into the matter, Rossetti said. If the fraudulent activity continues, the borough may have to close out the account.

That would be a nightmare because the particular account has been set up for receipts from and payments to the state for as long as she can remember, Rossetti said.

The only other option, if the problem persists, is to give the bank a list of all the checks cut from the account, she said. In that scenario, someone from the bank will make sure just those checks clear.

Phillipsburg Police Chief James Faulborn said his department began investigating July 1. He said he couldn't disclose who the checks were made out to -- or if it was to an individual or entity -- without jeopardizing the integrity of the investigation. Solving this kind of crime can be as simple as somebody looking at a photograph and saying "I know who that is," he said.

Or fraudulent checks can be a part of a nationwide ring, Faulborn said.

"Each investigation has its own little nuances," he said.

Anyone who obtains an account number along with the routing number can create a fraudulent check, Faulborn said. Rossetti said it appeared as though someone created their own Alpha borough check and went to town with it.

Faulborn said he's only ever seen individuals or businesses fall victim to such schemes. He advises people to check their accounts regularly, at least every two to three days and be on the lookout for unusual charges.